Data center initiative to become part of PortfolioStat

By Frank Konkel

Mar 13, 2013

The ongoing effort to find and shut down unneeded data centers has shown some early success, but its status is about to change. (Stock image)

Created in 2010, the Federal Data Center Consolidation Initiative’s objective to close or consolidate some 1,200 of nearly 2,900 identified federal data centers is intended to be just one portion of a broader campaign to curb waste and inefficiency in IT spending.

Now, it appears FDCCI will be formally treated as such, with its 2013 baseline agency inventories categorized and rolled into PortfolioStat when that project's update commences.

"When we roll out and ultimately implement the next version of PortfolioStat, which will include work to optimize as well as consolidate data centers, we will be categorizing the data center population into different categories and expect to have additional information (regarding) baseline as agency FDCCI FY13 inventories come in and the PortfolioStat sessions commence," said an official at the Office of Management and Budget.

Three years ago, OMB championed FDCCI with an expected savings of close to $5 billion, though Government Accountability Office estimates came in lower at about $2.4 billion. Savings thus far from the initiative remains unclear, though the Defense Department – the largest data center owner among agencies – predicted close to $2 billion in expected savings from closing many of its data centers.

OMB created PortfolioStat in 2012 to examine individual agency’s entire IT portfolios through a "face-to-face, evidence-based review." In October 2012, OMB touted PortfolioStat’s success in an OMB blog post, stating the new initiative had already saved $2.5 billion in IT investments through 2015.

PortfolioStat built on the successes of other OMB-led cost-cutting initiatives like TechStat, which U.S. CIO Steven VanRoekel says has saved the government about $4 billion since 2010.

David Powner, director of IT management issues at GAO, said his agency will be releasing a report on OMB’s progress compared to expected consolidation and cost savings goals with regards to FDCCI, as well as assessing the jobs done by oversight organizations. The report is slated to come out April 17, Powner said.